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The employee handbook was once the document that employees received to assist them in getting to know the company better and in understanding the rules for employment with that company. While this basic function of the employee handbook remains relevant, it has an added purpose in the litigious twenty-first century: letting employees know the specifics of a variety of areas to prevent unnecessary lawsuits if something goes wrong. An effective employee handbook for a small business should cover all the basics and provide as much information as possible about company policies, rules for employee behavior, information about benefits and compliance and details about emergency situations.

Writing Style

First and foremost, the employee handbook should be simple and concise in style, providing all of the necessary information without flowery detail. The employee handbook is not an exercise in creative writing. Instead, it is a focused document about company policies and other specifics that employees need to be able to understand without any question. In the case of legal issues, the employee handbook should not lack clarity about the company’s, or the employee’s, responsibilities.

Policies

The employee handbook should outline as many policies as possible and with as much consistency as possible. Focus on providing information about basic policies, such as the company’s position on maintaining employee records, employee timeliness and dress code, smoking and substance abuse, sexual harassment, breaks (lunch and otherwise), use of company property, safety procedures and performance reviews. The employee handbook should also include a clear company mission and a stated code of conduct that all employees are expected to follow.

Technology Rules

In an age when communication options are on the rise, the employee handbook should specify the rules regarding employee use of the Internet and cell phones. For employees who work extensively in front of computers, employers need to clarify what the rules are regarding Internet searches and checking personal email and social networking sites. (In some cases, employers block Internet access beyond certain sites; if this is the case, it should be mentioned in the handbook.) If employees are required to turn off or silence cell phones while at work, this should be noted in the handbook.

Pay and Benefits

The employee handbook needs to contain clear information about company payroll dates, overtime pay, vacation accrual, required work hours per day and per week, holidays and holiday pay, pay raises and sick leave and pay. Additionally, the employee handbook should describe any benefits that the company provides, including medical and dental benefits and retirement options. In terms of medical benefits, the employee handbook should note the extension of COBRA health care once an employee leaves the company.

Compliance

The Family Medical Leave Act (FMLA) provides employees with the option to take leave, without certain penalties, for up to 12 weeks. Small businesses with 50 employees or more must observe FMLA, and the company’s compliance with this federal policy should be noted in the employee handbook. In addition, compliance with state and federal law regarding maternity leave, jury duty, disability and worker’s compensation need to be stated.

Emergency Situations

All employers hope to prevent emergency situations, but they do arise, and the employee handbook should contain clear information for what employees should do in case of an emergency. The handbook should note where employees need to go, whom they should notify and how the company works to prevent emergency and safety situations. If the company has periodic fire drills, the handbook should state this and how often it occurs.

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About the Author

Kristie Lorette started writing professionally in 1996. She earned her Bachelor of Science degree in marketing and multinational business from Florida State University and a Master of Business Administration from Nova Southeastern University. Her work has appeared online at Bill Savings, Money Smart Life and Mortgage Loan.

Lorette, Kristie. (n.d.). Small Business Guidelines for Employee Handbook. Small Business - Chron.com. Retrieved from http://smallbusiness.chron.com/small-business-guidelines-employee-handbook-2922.html